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Fees

How accountancy fees work

Accountants charge in different ways. Knowing how the fee is worked out makes it easier to compare quotes.

Draft: not yet reviewed by a practising accountant.

The short answer

Accountants charge in different ways. Some charge a fixed fee, paid monthly or once a year, for an agreed list of work. Extra work, such as tax advice or tidying records, is often charged separately. The price depends mainly on the type of business, its size, how many transactions it has, whether it is registered for VAT, and whether there is payroll.

The main ways accountants charge

Common ways UK accountants charge small businesses
Way of chargingHow it worksWatch for
Fixed monthly feeA set amount each month for an agreed list of workWhat is left out of the list
Fixed yearly feeOne price for the year's accounts and returnsExtra charges for late or messy records
Hourly rateYou pay for the time spentHard to know the total in advance
PackagesSet bundles at different prices, often onlineLimits on transactions or contact

What changes the price

  • Type of business: a limited company has more to file than a sole trader.
  • Size: turnover and number of transactions.
  • VAT: VAT returns add work.
  • Payroll: the number of people paid, and how often.
  • Bookkeeping: whether you keep your own records up to date or the accountant does it.
  • Extras: management accounts, forecasts, tax planning and meetings.

Examples of advertised prices

Two online accountancy firms we checked on their own websites on 12 October 2026 start at £30 to £49 a month plus VAT for a sole trader, and £75 to £89 a month plus VAT for a limited company.P These are basic online packages. Firms that do more, such as monthly management accounts, usually price individually, and some firms only give prices on request. Two examples cannot show what is typical, and we have not found a reliable survey.

Before you agree a fee

  1. Ask for the list of work the fee covers, in writing. ACCA members must send an engagement letter that sets out the work and how the fee is charged.3
  2. Ask what costs extra, and how extra work is priced.
  3. Ask when the fee is reviewed, and how much notice you get of a rise.
  4. Compare quotes for the same list of work, not just the headline price.

ICAEW members must give you fee quotes, or how the fee is worked out, in writing. A firm that sets a fixed fee is expected to honour it.1

See What a fee should include.

Sources

  1. ICAEW, "Fee information" ethics helpsheet (ICAEW Code of Ethics R330.5). icaew.com. Checked 12 October 2026.
  2. Published prices on the firms' own pricing pages, checked 12 October 2026: fixedfeeaccountant.com/pricing (£30 and £75 a month plus VAT, cheapest tier) and aardvarkaccounting.co.uk/pricing (from £49 and £89 a month plus VAT). Examples only, not a recommendation.
  3. ACCA, "Obtaining professional work" factsheet, 1 July 2025 (letters of engagement). accaglobal.com. Checked 12 October 2026.